The World Food Program’s (WFP) Market Monitor of May 2022 is reporting the nominal price change in food and petroleum products that is affecting staples and other commodities across the country.
The WFP’s report states that the increase in domestic prices reflects international food price trends, which are largely driven by the global energy crisis; a situation also leading to the significant increase in gasoline prices thereby putting additional pressure on food prices and basic commodities.
The report highlights how the rising food and fuel prices threaten the food security of many Liberian households especially in South-eastern counties and urban poor households
According to the report up until May 2022, there is an 8 % increase in the price of rice; 35 % increase in a 25kg bag of imported rice in River Gee County and 42% increase in gasoline since February.
The WFP recognized that the primary stable consumed in Liberia is rice, though 70 percent is imported, it is observed that the retail price of imported parboiled rice increased in almost all markets in May as compared to same period last year in the country.
The WFP Market Monitor which was released yesterday, June 22, 2022, stated that the prices of rice are higher in the markets especially in the South east with Fist Town accounting for 35 percent than any other areas in Liberia.
The report highlighted that the average price for a gallon of palm oil currently stands at L$750 in May 2022, a slight increase of 4 percent compared to same time last year. Palm oil prices are reportedly higher compared to a year ago in Fish Town (65 percent), Tubmanburg (49 percent) and Pleebo (40 percent).
Palm oil traders interviewed during the market visits according to the report, attributed the price increase to the high transportation costs which is mostly due to the rise in gasoline prices and poor condition of farm to market roads while the report significantly noted the high domestic demand in addition to regular cross-border flows to neighboring Guinea and Sierra Leone.
The report said palm oil prices may continue to go up in June due to the price increase in gasoline leading to higher than usual transport costs coupled with limited supply as the harvesting season for palm oil comes to an end in June.
Also in the reporting period, beans reported higher prices compared to the same time last year as the average price for a kilogram of cowpeas in May 2022 was L$170, up by 35 percent compared to one year ago.
The prices of Cowpeas commonly known as beans may likely increase in the coming months due to global energy crisis which have led to increase in prices of petroleum products coupled with high transport costs because of the deplorable state of the roads.
Meanwhile, the report realized that the pump price for a gallon of gasoline was stable at $US3.57 for the most part of 2021 but recorded a slight increase in October 2021 from US$3.70 to US$4.00 before reaching a high of $US5.66 (42 percent increase) in February 2022; something which has been attributed to the global energy crisis due to the Ukraine war.
“The cost of gasoline in the country is now higher than the daily minimum wage for unskilled laborers which stands at $US5.50 per day and $US3.60 per day for domestic laborers. Additionally, Liberia seems to be the country in the region with one of the highest costs of gasoline and fuel compared to Guinea ($4.23), Sierra Leone ($4.12), Ghana ($4.50) and Ivory Coast now sells a gallon for $4.11,” the WFP noted.
However, the report recorded that for the most part; prices of cassava, the second most consumed staple have been stable mentioning that the price of cassava remained stable in most markets when compared to the same time last year, except in urban centers such as Red Light and Buchanan markets.
The WFP reports that the prices of cassava and cassava products may increase in the coming months as production is lowest during the rainy season coupled with the high transportation cost due to the deplorable state of the roads and the price increase in petroleum products making it difficult to transport the produce to markets.
